Biofuels behind food price hikes: leaked World Bank report

Fri Jul 4, 3:34 AM ET

LONDON (AFP) - Biofuels have caused world food prices to increase by 75 percent, according to the findings of an unpublished World Bank report published in The Guardian newspaper on Friday.

The daily said the report was finished in April but was not published to avoid embarrassing the US government, which has claimed plant-derived fuels have pushed up prices by only three percent.

Biofuels, which supporters claim are a "greener" alternative to using fossil fuel and cut greenhouse gas emissions, and rising food prices will be on the agenda when G8 leaders meet in Japan next week for their annual summit.

The report's author, a senior World Bank economist, assessed that contrary to claims by US President George W. Bush, increased demand from India and China has not been the cause of rising food prices.

http://news.yahoo.com/s/afp/20080704/ts ... kusbritain

Hmm, Put corn in gas, corn demand goes up, price of corn goes up. Who woulda thought?!?

Russian gov are holding a firmer grip on their grain, being the 5 largest exporter.